State Pension Buyback

The full basic State Pension is currently £179.60 per week, based on having 35 qualifying years of national insurance contributions so it should not be assumed you are automatically entitled to it. You also need a minimum of 10 qualifying years before you get anything. You may well have gaps in your contributions from when you worked outside the UK, took time off to look after children or you were out of work or not working.

It is easy enough to check your national insurance record through the Government Gateway, or by requesting a statement using a BR19 request. Either way, you will be able to see your current entitlement and if there are any gaps. Depending on the reason for the gap, you may be entitled to a ‘credit’ which will make up for these missing years (looking after children is a great example of where you could be entitled to a credit). Otherwise, another way to boost your State Pension is through the purchase of ‘qualifying years’ via the voluntary ‘class 3’ national insurance contributions.

Generally speaking, you are limited to go back 6 years to fill these gaps but there could be some wiggle-room on this. However, if you are looking at buying any of your missing years, the current amount (2021/22) is only £15.40 per missing week adding up to £800 for an entire year. Buying a full year equates to a boost to your State Pension of £250, and, as long as you live for 3 years over your State Pension age, your payment will have been worth it. Regrettably, you cannot increase your State Pension above the full basic amount, so if you have 35 qualifying years already, that’s your lot.

In addition, there may be occasions where you are excluded from doing so. If you suspect you may run into issues or would like some general guidance on the pros and cons of doing this, please do not hesitate to get in touch with our pension experts on 01423 223648 or email us below